Study Paints an Upbeat Picture of Southland Economy

The aerospace industry is poised to turn around, housing prices are about to move up and things are generally looking rosy for the Southern California economy, a local booster group predicts.

Job growth for the five-county area is projected at 2.3% this year, followed by another year of 2.3% growth in 1997, according to an economic forecast scheduled to be released today by the Economic Development Corp. of Los Angeles County, a private nonprofit jobs promotion agency.

“The region’s balance sheet for the rest of 1996 and for 1997 looks quite favorable, with almost all of the economic cylinders firing,” the report stated, while noting that challenges remain for Los Angeles, Orange, Riverside, San Bernardino and Ventura counties and for the state as a whole.

The region and state must work to improve their image as well as their friendliness to business, the study advised.

The good news locally is:

* The local aerospace industry will begin to add jobs this year.

* Home prices are already rising in Orange and Ventura counties and appear to have bottomed in Los Angeles and the Riverside-San Bernardino area.

* More growth in the apparel industry.

* More jobs in professional management services, particularly management consulting and engineering.

* Positive performance in international trade, motion picture and TV production, retail sales, tourism, wholesale trade, new home construction and health services.

The bad news:

* Possible job losses in local government.

* The commercial office leasing market will struggle with too much empty space.